I recently watched an informative video on Dhan’s YouTube channel they talked about using “Super trend” as “Trailing Stoploss”. If anybody knows how to do that please let me know how it is done.
Hello @Abhinav_Patil
Welcome to MadeForTrade community!
Glad to know you find the youtube videos educating. @him_arora would be the best person to help you out here.
Hi @Abhinav_Patil @Hardik
Yes, Supertrend (ST) indicator is used by many traders (including myself) as a TSL.
When we say that this acts as an SL, it means that as the prices move in our favor(let’s say Up), the ST also moves up. This way SuperTrend can help you stay in profitable positions for longer periods. The SuperTrend indicator acts as a trailing stop-loss by following the trend. If the price is in a bullish trend, the SuperTrend line acts as support. As the price rises, the SuperTrend line also rises, creating a dynamic stop-loss level. If the price breaks below the SuperTrend line, it signals a potential reversal and the position should be exited. Similarly, in a bearish trend, the SuperTrend line acts as resistance.
But yes, you will have to keep updating the SL level on your trading platform, as ST moves in your favor.
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Thankyou sir, for clearing my confusion.